# Offices, retail take lead in Singapore property deals - **Source:** Real Estate Asia - **Published:** 2026-08-27T22:00:00.000Z - **Author:** Vincent Mariel Galang - **Original:** https://realestateasia.com/exclusive/offices-retail-take-lead-in-singapore-property-deals - **Topics:** Commercial & Industrial, Government & Policy, Transactions & Deals ## Featured rationale The shift signals stronger investor confidence in prime income-producing commercial assets, which may support rents and capital values amid falling borrowing costs and constrained supply. ## AI summary Singapore investment sales reached $35.2b in H1 2026, exceeding 2025’s full-year $33b, with offices and retail contributing 33% and 18%, respectively. ## Original article Prime commercial assets gain favour as tight supply supports rents and yields. Falling borrowing costs and constrained supply are making office and retail assets the focus of Singapore’s property investment market, attracting buyers seeking stable income. Office and retail accounted for 33% and 18% of first-half investment sales, respectively, shifting from 2025, when residential and industrial properties led the market, said Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield Plc. “This shift reflects growing investor confidence in offices and retail, which offer strong income visibility, underpinned by limited new supply and resilient tenant demand, particularly for high-quality assets such as CBD Grade A offices and Tier 1 retail malls,” he said in an emailed reply to questions. Wong said office and retail yield spreads over the government’s 10-year bond have widened beyond pre-pandemic levels, improving their appeal for investors seeking income and potential capital appreciation. Catherine He, head of research at Colliers International (Singapore) Pte Ltd., said capital is concentrating in prime commercial assets. Retail, office and residential properties led second-quarter activity, excluding government land sales, she added. Prime office and retail assets are trading at net yields of about 3.5% to 4.5%, with capital values remaining stable, He said. Office remains the standout sector, with capital shifting towards the segment on favourable supply-demand conditions, said Chua Yang Liang, head of research and advisory for Southeast Asia at Jones Lang LaSalle, Inc. (JLL). Retail and food-and-beverage properties are also attracting local and regional capital as tenant turnover creates value-add opportunities, whilst stronger owners continue to recycle capital and realign their portfolios, he added. Singapore’s investment market has exceeded expectations this year. Cushman & Wakefield said transaction volumes reached $35.2b in the first half, exceeding the $33b recorded for all of 2025. Falling borrowing costs have supported the increase. The three-month Singapore overnight rate average had fallen to about 1.08% at end-June from about 1.18% at the start of the year, Wong said. “At current borrowing costs, many office, retail and industrial assets are able to generate positive cash-on-cash returns whilst operating fundamentals remain resilient,” he said. The market is also benefiting from a constrained supply pipeline, expectations of rental growth, and Singapore’s appeal as a safe haven amid war and macroeconomic uncertainty, Wong said. Colliers recorded $15.6b in investment sales in the second quarter, down 5.9% from a record $16.6b in the first quarter but more than double the level a year earlier. “The tone has shifted from broad recovery to disciplined, income-focused deployment concentrated in prime assets,” He said. Alan Cheong, executive director for research and consultancy at Savills Singapore Pte. Ltd., said commercial property continues to benefit from lower borrowing costs and capital raised in recent years that is seeking investment opportunities. Demand for private commercial real estate is also supported by limited supply of Grade A offices in the central business district and relatively attractive retail yields, Cheong said. Investment restrictions affecting private residential property and JTC Corporation-managed industrial properties have also directed capital towards commercial assets, he said. Chua cited Hongkong Land Holdings Ltd.’s Singapore Central Private Real Estate Fund as a standout transaction. The fund, which debuted in February, is the city-state’s biggest office-focused private investment vehicle, backed by $8.2b in assets. Savills expects 2026 investment sales of $55b to $60b, with Cheong saying the second half is likely to maintain the growth trajectory seen in late 2025, although first-quarter volumes are unlikely to be repeated. Government land sales could provide another boost. The Town Hall Link white-site tender, scheduled to close in November, could generate a multibillion-dollar transaction before year-end, Cheong said. Colliers expects full-year investment sales to exceed $40b, potentially making 2026 the highest-volume year since 2007. Interest rates remain the main uncertainty, Wong said. A sustained increase in global borrowing costs could raise domestic financing costs and affect asset pricing. Investors are likely to favour high-quality, income-producing properties with strong tenant demand and limited supply risk, where rental growth can help offset higher borrowing costs, he said. ## Chinese translation > Translation model: openai_codex_cli ### 办公楼、零售引领新加坡房地产交易 新加坡商业房地产市场有望迎来自2007年以来最强劲的一年，办公楼和零售引领上半年352亿新币的投资销售。 优质商业资产受青睐，因供应紧张支撑租金和收益率。 借贷成本下降和供应受限，正使办公楼和零售资产成为新加坡房地产投资市场的焦点，吸引寻求稳定收入的买家。 Cushman & Wakefield Plc 新加坡及东南亚研究主管 Wong Xian Yang 表示，办公楼和零售分别占上半年投资销售的33%和18%，这与2025年住宅和工业物业引领市场的情况有所不同。 “这一转变反映出投资者对办公楼和零售的信心增强，这些资产提供较强的收入可见性，并受到有限新增供应和具韧性的租户需求支撑，尤其是 CBD Grade A 办公楼和 Tier 1 零售商场等高品质资产，”他在通过电子邮件回复提问时表示。 Wong 表示，办公楼和零售收益率相对于政府10年期债券的利差已扩大至疫情前水平以上，提高了它们对寻求收入和潜在资本增值的投资者的吸引力。 Colliers International (Singapore) Pte Ltd. 研究主管 Catherine He 表示，资本正集中流向优质商业资产。她补充说，剔除政府售地后，零售、办公楼和住宅物业引领了第二季度活动。 He 表示，优质办公楼和零售资产的交易净收益率约为3.5%至4.5%，资本价值保持稳定。 Jones Lang LaSalle, Inc. (JLL) 东南亚研究与咨询主管 Chua Yang Liang 表示，在有利的供需条件下，资本正转向办公楼板块，使其仍是表现突出的领域。 他补充说，零售以及餐饮物业也在吸引本地和区域资本，因为租户流动创造了增值机会，同时实力较强的业主继续循环使用资本并重新调整其投资组合。 新加坡投资市场今年表现超过预期。Cushman & Wakefield 表示，上半年交易量达到352亿新币，超过2025年全年录得的330亿新币。 借贷成本下降支撑了这一增长。Wong 表示，三个月新加坡隔夜利率平均值已从年初约1.18%降至6月底约1.08%。 “在当前借贷成本下，许多办公楼、零售和工业资产能够产生正的现金对现金回报，同时营运基本面仍具韧性，”他说。 Wong 表示，市场也受益于受限的供应管线、租金增长预期，以及在战争和宏观经济不确定性下新加坡作为避险地的吸引力。 Colliers 录得第二季度投资销售156亿新币，较第一季度创纪录的166亿新币下降5.9%，但较一年前水平增加逾一倍。 “市场基调已从广泛复苏转向有纪律、以收入为重点、集中于优质资产的资本部署，”He 表示。 Savills Singapore Pte. Ltd. 研究与咨询执行董事 Alan Cheong 表示，商业房地产继续受益于较低借贷成本，以及近年来筹集、正在寻找投资机会的资本。 Cheong 表示，中央商业区 Grade A 办公楼供应有限，以及零售收益率相对具吸引力，也支撑了私人商业房地产需求。 他说，影响私人住宅物业和由 JTC Corporation 管理的工业物业的投资限制，也引导资本流向商业资产。 Chua 提到 Hongkong Land Holdings Ltd. 的 Singapore Central Private Real Estate Fund 是一项突出的交易。该基金于2月首次推出，是这个城市国家规模最大的专注办公楼的私人投资工具，由82亿新币资产支持。 Savills 预计2026年投资销售为550亿至600亿新币，Cheong 表示，下半年可能维持2025年底以来的增长轨迹，尽管第一季度成交量不太可能重现。 政府售地可能提供另一项推动力。Cheong 表示，Town Hall Link 白地招标计划于11月截止，可能在年底前产生一笔数十亿新币的交易。 Colliers 预计全年投资销售将超过400亿新币，可能使2026年成为自2007年以来成交量最高的一年。 Wong 表示，利率仍是主要不确定因素。全球借贷成本若持续上升，可能推高国内融资成本并影响资产定价。 他说，投资者可能会偏好拥有强劲租户需求和有限供应风险的高品质、可产生收入的物业，在这些物业中，租金增长可帮助抵消较高的借贷成本。